Elgin's Legal Bills Mount In Bias Fight

Lawyers recruited by Elgin for its fight with federal fair-housing regulators have cost taxpayers about $50,000, a sum likely to skyrocket as the legal skirmish continues.

Negotiations between Elgin and the U.S. Department of Housing and Urban Development failed last month, prompting HUD to refer the dispute to the Justice Department, which is weighing whether to sue the city over its alleged mistreatment of Hispanic residents.

Elgin leaders deny discriminating and hired the Chicago firm of Seyfarth Shaw to rebut allegations that inspectors treated Hispanics unfairly in a campaign to stop overcrowding of homes.

Seyfarth Shaw billed the city more than $8,000 in September, almost $27,000 in October and an additional $15,000 in November. The City Council last week voted 6-0 to pay the firm $49,960.39.

Mayor Ed Schock said city officials expected such costs but have not yet discussed how much it would be willing to spend to defend against a potential Justice Department lawsuit.

"There's no bottom-line figure," Schock said Friday. "We have some good people in house. That helps us avoid some costs, but we're going to need outside help."

HUD officials in Chicago will hand over their Elgin files--including interviews with alleged discrimination victims city inspection documents--to the Justice Department.

Expecting a Justice Department lawsuit, the council agreed last summer to hire Seyfarth Shaw at a pretrial hourly rate of $260. Trial work would cost the city $285 per hour.

Jeffrey Ross, the Seyfarth Shaw lawyer working closest with Elgin, was Waukegan's lead defense attorney against a federal lawsuit filed on behalf of Hispanics in that city.

Waukegan in 1997 agreed to pay $200,000 to settle the case, and city officials estimate they spent an additional $500,000 on legal fees.